The government is aiming to make a new simplified personal income tax regime more attractive for the salaried class, sources told CNBCTV18.
According to a report by CNBCTV18, the government is considering tweaking a new tax regime to encourage taxpayer adoption. Also, it is expected to club standard deduction and interest against home loans, sources said.
"House rent and medical insurance premium may also be included under new tax regime. Finance minister Nirmala Sitharaman
is also expected to encourage taxpayers to shift to new direct tax scheme and give away other exemptions. Talks are even underway on more relief for individual taxpayers," sources added.
As per ANI, Sitharaman held a pre-budget stakeholder consultation with Bharatiya Janata Party (BJP) state representatives belonging to different backgrounds and communities such as industries, professional, business, academicians, economists, women and tribal and backward classes.
Here are the proposals that are being considered as per CNBCTV18's report:
- Hike in existing standard deduction limit
- Increase in window for medical insurance premium
- Simplification in capital gains tax rules
However, no final decision has been taken as of now. Direct tax proposals may get finalized after 20 January.
As per CNBCTV18, of over six crore taxpayers, four crore are below income bracket of Rs 5 lakh per annum where a rebate already exists. Budget 2022 will highlight the need for stable tax regime. It may even talk about landmark decision to settle retrospective tax cases.
Additionally, the government may look at launching a mediation window before tax demands are raised. Further, ease in tax compliance for exporters and industry is likely to be announced, CNBCTV18 said in a report.
Representatives from 25 states participated in the discussion held by Sitharaman, including northeastern states like Mizoram, Tripura and from Jharkhand, Chhattisgarh, Ladakh and southern states like Tamil Nadu, Kerala, Karnataka, and Telangana. States like Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Orissa were also amongst many more states from central and North India making effective pitch for the development of their regions.
Some prominent think tanks and Morcha presidents also presented their views and suggestions. Senior central party leaders conducted the proceedings from party headquarters. State party presidents from respective state party offices were also present in the hybrid mode. About 20 written submissions have been received, which will be compiled and submitted to the finance Minister, ANI said in a report.
The budget session of Parliament is set to commence on 31 January and will conclude on 8 April. The first half of the budget session will run from 31 January to 11 February. It will reassemble on 14 March to sit until 8 April, subject to government exigencies. The President will also address both Houses of Parliament assembled together on 11 am on 31 January, ANI said.
The government will present the Budget for the financial year 2022-23 on 1 February.
"The 256th Session of Rajya Sabha (Budget Session - 2022) is summoned to meet on Monday, 31 January, and subject to exigencies of Government Business, the Session may conclude on Friday, 8 April. During this period, Chairman may be moved to kindly adjourn the Rajya Sabha on Friday, February 11 to reassemble on Monday, 14 March to enable the Department-related Parliamentary Standing Committees to consider the 'Demands for Grants relating to Ministries/Departments and prepare their reports," a letter of Additional secretary-general of Ministry of Parliamentary Affairs Minister stated.
There will be no sitting on 18 March on account of Holi.
"The Union Budget for 2022-23 will be laid in the Rajya Sabha after its presentation in Lok Sabha on Tuesday, 1 February at 11.00 am," the letter said.
Recently more than 400 staff members of Parliament have tested positive for COVID-19. Consequently, the Chairman of Rajya Sabha and Speaker of Lok Sabha has reviewed the situation and given instructions to both houses to prepare a plan for the smooth functioning of both houses during the budget session of Parliament amid COVID -19 pandemic.
With inputs from agencies
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